Beware of operating your photography business as a sole proprietorship, advises advocate Aaron M. Arce Stark in “Making Your Photo Studio an LLC: The Pros and Cons.”
“Let’s say a applicant hires you to shoot an assignment. When it comes time to pay, the applicant writes you a analysis and addresses it to you—your claimed name. You banknote it.
“In demography these simple steps, you’ve accidentally accustomed your business as a sole proprietorship: For all acknowledged intents and purposes, you are the business. This is trouble. It agency that if your business is sued for any reason—copyright infringement, aggression of privacy, or alike simple aperture of contract—then you are on the hook. Any asset you own could be taken, including your house, your accessories and your claimed coffer accounts.
“To [encourage people] to alpha businesses after abhorrence of accident all their money, we accept limited-liability corporations, or LLCs. LLCs action a accountability shield, after all the hassle, paperwork and academic procedures appropriate of a approved corporation.”
For added about LLCs and how they work, see “Making Your Photo Studio an LLC: The Pros and Cons” by advocate Aaron M. Arce Stark.
Related:Insurance: What Coverage Photographers Need
Crew Injury on Set: How to Protect Yourself (and Your Crew)
How (and Why) to Make Copyright Registration Part of Your Workflow
New Makeover for Group Registration of Photographs: 6 Takeaways
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